Subrogation Contract Template for Nigeria

The Subrogation Contract is a crucial document in Nigerian insurance practice, used when an insurer needs to formally acquire the right to pursue recovery claims against third parties who caused losses to their insured. This document becomes necessary after the insurer has compensated the insured for covered losses and wishes to exercise their right of recovery. It must comply with Nigerian insurance regulations, particularly the Insurance Act 2003 and NAICOM guidelines. The contract outlines the transfer of rights, procedures for pursuit of claims, cooperation requirements, and distribution of recoveries. It's particularly important in cases involving significant insurance payouts where third-party liability exists.

1. Parties: Identification of the insurer and the insured party, including full legal names and addresses

2. Background: Context of the original insurance policy, the loss event, and the basis for subrogation

3. Definitions: Definitions of key terms used throughout the agreement, including 'Subrogation Rights', 'Claims', and 'Recovery Proceeds'

4. Grant of Subrogation Rights: Clear statement of the transfer of rights from insured to insurer

5. Scope of Subrogation: Detailed description of what rights are being transferred and to what extent

6. Obligations of the Insured: Duties of the insured to assist in the recovery process and maintain claim integrity

7. Rights and Powers of the Insurer: Extent of insurer's authority to pursue claims and negotiate settlements

8. Recovery Proceeds Distribution: How recovered amounts will be distributed between parties

9. Cooperation and Information Sharing: Requirements for parties to cooperate and share relevant information

10. Representations and Warranties: Statements of fact and guarantees by both parties

11. Confidentiality: Obligations regarding confidential information handling

12. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction details

13. Notices: Process for formal communications between parties

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments